Trinidad and Tobago Eyes New Gas Lifeline as bp, ADNOC and Qatar Move Into Loran Phase II

Port of Spain is buzzing with cautious optimism this week as fresh developments in Venezuela’s offshore gas sector raise the prospect of a significant new supply of natural gas for Trinidad and Tobago’s beleaguered energy industry. The awarding of the Loran Phase 2 licence to a consortium featuring energy giant bp, Abu Dhabi’s XRG (owned by ADNOC) and Qatar’s UCC Oil and Gas has opened a new chapter in cross-border energy cooperation, one that local experts say could help keep the Atlantic LNG plant running and feed the industrial heartland at Point Lisas.

The licence, announced around 13 August, covers the Loran Phase 2 development in the Plataforma Deltana area offshore Venezuela. According to bp’s own release, the phase contains an estimated 4 trillion cubic feet of recoverable gas resources, with bp operating the project and holding an equal working interest alongside XRG and UCC Oil and Gas Holding LLC. The move marks a significant debut for both Emirati and Qatari firms in Venezuela’s energy sector, and for Trinidad and Tobago, it signals the potential for more pipeline gas to flow across the maritime border in the years ahead.

A Potential Prize for Atlantic LNG and Point Lisas

For Trinidad and Tobago, the immediate prize is clear: additional pipeline gas to sustain the Atlantic LNG facility, the country’s crown jewel in natural gas monetisation. Energy sector expert Dr Thackwray Driver described the development as positive for both nations, noting that the involvement of bp, ADNOC and UCC in Loran Phase II could be a game-changer. Driver expects that most of the gas from Loran could be directed to Atlantic LNG, which would in turn free up other sources—including the Manakin/Cocuina field and the Dragon field, where the National Gas Company (NGC) holds an upstream investment—for the petrochemical plants at Point Lisas.

The Loran field is part of the larger Loran-Manatee cross-border gas field, which is estimated to contain a staggering ten trillion cubic feet of natural gas. On the Trinidad and Tobago side of the border, Shell is developing the Manatee field, with first gas expected in the second quarter of 2027. The synchronisation of these projects could provide a steady, long-term supply of gas to an economy that has felt the pinch of declining domestic production in recent years.

Prime Minister Kamla Persad-Bissessar has described the agreements as a boost to the country’s energy security and its ambitions to remain a regional energy hub. The Government’s framing is one of strategic positioning, with the hope that these cross-border arrangements will cement Trinidad and Tobago’s role as the processing and export centre for the region’s natural gas.

Local Experts See Opportunity, Urge Caution

Economist Dr Jamelia Harris views the cross-border gas developments as a positive step that could revive the energy sector and provide a steadier supply of gas to industries that depend on it. She expects spillover benefits for the services sector, alongside higher government revenues and foreign exchange earnings. However, Harris cautioned that Trinidad and Tobago must secure the best possible terms and ensure that the benefits of growth are widely shared across the population. She also urged policymakers to use the expected energy gains to strengthen non-energy sectors and break the boom-bust cycle that has characterised the economy since independence.

Fellow economist Dr Ronald Ramkissoon welcomed the potential benefits, particularly the prospect of additional gas for petrochemical plants, more employment, higher government revenues and increased foreign exchange earnings. But he struck a note of caution, warning that the country must carefully examine the political economy surrounding the arrangements and distinguish between gross gains and net gains. Ramkissoon also warned against allowing another energy boom to divert attention from agriculture, food security, tourism and other non-energy activities that are vital for long-term resilience.

Driver, for his part, sees longer-term opportunities in the Venezuelan offshore acreage, including for Trinidad-based service companies. He urged the Government to engage the local service sector so that firms can position themselves for work related to the development and operation of the fields. This is a crucial point for a country where the energy services industry has deep roots and significant expertise, honed over decades of supporting Atlantic LNG and the wider upstream sector.

The Political and Commercial Landscape

Not everyone is convinced the deal is as rosy as it appears. Former Energy Minister Stuart Young has taken a more critical stance, arguing that the current administration was not present at the negotiations with Venezuela and is therefore at a disadvantage. Young noted that four companies are now involved in the broader Loran-Manatee complex, with Shell holding Loran Phase I, which will require delicate negotiations over development and commercial terms with Venezuela. He pointed to the recent shutdown of the Methanex and Nutrien plants at Point Lisas and warnings of further closures, arguing that Trinidad and Tobago needs to secure access to gas while decisions over Venezuela’s resources are being made.

Young’s concerns highlight a deeper anxiety within the local energy sector: the fear that Trinidad and Tobago could be left on the sidelines while international players carve up the region’s gas wealth. The shutdowns at Point Lisas have already cost jobs and revenue and dealt a blow to the petrochemical industry, which has long been a pillar of the national economy. The question now is whether the Loran Phase II development can deliver gas quickly enough to prevent further closures and revive the industrial estate.

Global Context: A World Hungry for Gas

The timing of the Venezuelan gas deal is significant on the global stage. According to energy industry reports, the agreement comes at a time when prolonged hostilities between the United States and Iran have hampered global energy supplies, including about a fifth of liquefied natural gas shipments that normally traverse the war-choked Strait of Hormuz. With global LNG demand soaring and supply routes under threat, Venezuelan gas processed in Trinidad could play an increasingly important role in meeting regional and international energy needs.

Mohamed Al Aryani, president for International Gas at XRG, captured the sentiment succinctly, stating: “Venezuela holds significant gas resources and has the potential to play a greater role in meeting regional and international energy demand.” That potential is now being unlocked, and Trinidad and Tobago stands to be a key beneficiary as the processing and export hub for this new wave of cross-border gas.

What Lies Ahead for the Energy Sector

As the dust settles on the licence award, the focus now shifts to the development and commercial terms that will govern Loran Phase II. The consortium of bp, XRG and UCC will need to work closely with Venezuelan authorities and with Trinidad and Tobago’s NGC to finalise arrangements for pipeline infrastructure and processing capacity at Atlantic LNG. These are complex negotiations, and the experts are unanimous that Trinidad and Tobago must approach them with a clear strategy and a firm grasp of its own interests.

For the wider Caribbean, the development is a reminder of the region’s potential as an energy powerhouse. Trinidad and Tobago has long been the region’s energy leader, and the ability to access Venezuelan gas could extend that leadership for decades to come. But it also carries risks: political instability in Venezuela, the complexities of cross-border resource management, and the ever-present danger of another boom-bust cycle that leaves the non-energy economy neglected.

The road ahead is uncertain, but the direction is clear. With bp, ADNOC and Qatar’s UCC now firmly in the picture, the Loran field is set to become a cornerstone of regional energy cooperation. For Trinidad and Tobago, the challenge is to ensure that the benefits flow to the people, the industries and the communities that have long depended on the energy sector for their livelihoods. The prize is within reach; the question is whether the country can seize it wisely.

By Sharon Sahatoo, Staff Writer

This article was produced with AI-assisted research and editorial support. Reporting is based on sources cited in the article.